Intellect Design Arena Q3 FY26 Profit Falls 72% QoQ to ₹28.4 Crore

31 Jan 2026 , 01:57 PM

Intellect Design Arena Ltd reported a sharp sequential decline in profitability for the third quarter of FY26, largely impacted by a one time exceptional expense linked to new labour regulations.

The company’s consolidated net profit for the December quarter stood at ₹28.4 crore, marking a quarter on quarter decline of 72% from ₹102 crore reported in the September quarter.

Revenue for the quarter declined by 3.5% on a sequential basis to ₹731.3 crore, compared with ₹758 crore recorded in the previous quarter, reflecting moderation in execution during the period.

Earnings before interest and tax fell sharply to ₹59.6 crore in Q3 FY26 from ₹116.3 crore in the preceding quarter, resulting in pressure on overall operating performance. Operating margin for the quarter declined to 8.1%, compared with 15.3% reported in the previous quarter, impacted by lower operating leverage and exceptional costs.

During the quarter, the company recognised a one time gratuity expense of ₹30.34 crore on a standalone basis and ₹30.84 crore on a consolidated basis following the implementation of new Labour Codes.

This gratuity related expense was classified as an exceptional item and weighed on quarterly profit, while the company clarified that the cost is non recurring in nature.

Separately, Intellect Design Arena informed stock exchanges on January 27 that it is accelerating its expansion in the United States market with the launch of an AI first payments platform. The new platform is aimed at supporting banks and financial institutions in adopting real time payment systems, with a focus on speed, resilience, and scalability.

The company highlighted that demand for instant payments continues to rise, driven largely by businesses seeking faster and more efficient transaction processing.

According to the company, the United States real time payments market is expected to grow to $2 billion by 2030, with an estimated annual growth rate of around 40%.

Intellect Design Arena noted that a significant number of banks are yet to join instant payment networks, which presents a sizeable opportunity for financial institutions looking to modernise and upgrade their payments infrastructure.

The company’s strategic push into AI driven real time payments positions it to tap into long term growth opportunities in the evolving global payments ecosystem, despite near term pressure on financial performance.

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